China Attracting Money Faster Than Ever And while Washington was arduously averting national bankruptcy last week, Beijing broke another financial record when Chinas currency, the yuan, reached its highest value against the dollar since 1993. Although investors are pulling back from most emerging markets, money is flowing into China faster than ever. Around one third of Chinas foreign currency reserves -- even the Peoples Bank of China doesnt cite an exact figure -- are invested in US bonds. That makes China the USs largest foreign creditor, and that fact poses a problem for Beijing as well. China has been issuing warnings to the US since the start of the recent shutdown crisis. Beijing is keeping a close eye on the conflict in Washington, said Premier Li Keqiang, who is also his countrys top economic policy specialist. Deputy Finance Minister Zhu Guangyao added: In the long term, America needs to solve its debt problem, to prevent the global economy from slumping. Even so, China has been only too glad to make use of the vacuum the US budget crisis has created on its own doorstep. President Xi attended one of the two summits in Asia that his counterpart Obama skipped. Xi also traveled to Jakarta, where Obama spent part of his childhood, and to Malaysia. During this time, Xi signed trade agreements worth $30 billion. Premier Li, meanwhile, traveled to a summit of the Association of Southeast Asian Nations (ASEAN) in Brunei, then continued on to Thailand and Vietnam.
Posted on: Wed, 23 Oct 2013 16:24:31 +0000
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